Suspected rogue trader weeps in dock as he faces £1.3bn fraud charge
16 Sep 2011
Suspected rogue trader Kweku Adoboli wept in the dock today as he appeared in court accused of a £1.3 billion fraud at Swiss banking giant UBS.
With an open-necked white shirt and sky blue sweatshirt, Kweku Adoboli stood accused of fraud and two charges of false accounting, one of which dated back to 2008.
The 31-year-old was remanded in custody to appear again at City of London Magistrates Court for a committal hearing on September 22.
During the fifteen minute hearing, the well-built Ghanaian was handed a tissue from the clerk as he wiped a tear away.The alleged rogue trader, son of a former Ghanaian official for the United Nations, joined the Swiss firm in a junior capacity in 2002.
He was arrested at his desk in a swoop by police in the early hours yesterday. The alleged fraud offence took place between January 1 and September 14 this year, the court heard.
The fraud charge against him read: "While occupying a position, namely being a senior trader with Global Synthetic Equities, in which you were expected to safeguard, or not to act against, the financial interests of UBS Bank, you dishonestly abused that position intending thereby to make a gain for yourself, causing losses to UBS or to expose UBS to risk of loss."
Adoboli's lawyer Louise Hodges, of solicitors Kingsley Napley, made no application for bail for her client, from Clark Street, Bethnal Green, east London.
After hearing from Crown Prosecution Service prosecutor David Levy, Chief Magistrate Carolyn Wagstaff told Adoboli: "You are remanded to appear back at this court on September 22 at 10am."
A packed courtroom looked on as the defendant stared down at his feet while he was ushered back to his custody cell.
Adoboli worked as a director of exchange traded funds (ETF) and delta-1 trading at UBS Investment Bank.
ETFs are an investment fund traded on stock exchanges, much like stocks, which hold assets such as stocks, commodities or bonds.
UBS, which has 6,000 staff in the UK, saw its shares slide 10% yesterday after it revealed the loss of £1.3 billion.
The loss could tip the bank into the red for the third quarter. The stock was three per cent higher today.
The disclosure heightened calls for greater regulation in the banking industry. A Swiss newspaper today reported that UBS will cut jobs at its investment banking unit, with "massive" savings due to be announced on November 17.
The bank has already been hit by global growth fears and last month said it would reduce its overall headcount by 3,500 as part of a move to save two billion Swiss francs (£1.5 billion) by the end of 2013.